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An audit is easier when you know what to gather. Below is a practical, prioritized checklist and plain‑language guidance—based on IRS guidance and 15 years of client experience—to help you prepare a complete response quickly.

Quick audit checklist (start here)

  • Identity & return: Copy of the tax return under audit and a government ID.
  • Income: W‑2s, 1099s (miscellaneous, MISC/NEC, K‑1s), K‑1s, bank and brokerage statements, rental income ledgers.
  • Expenses & deductions: Receipts, invoices, canceled checks, credit‑card statements tied to business or deduction items, mileage logs.
  • Assets: Purchase agreements, closing statements, depreciation schedules, Form 1099‑B and basis records for sales.
  • Payroll & employment: Payroll registers, Form W‑3/W‑2 copies, Form 941/940 reports, employee expense reports.
  • Credits & benefits: Child tax credit documentation, education records (Form 1098‑T), HSA contributions/receipts.
  • Other support: Contracts, business licenses, logs, trust agreements, legal or settlement documents.

Retention times (general guidance)

  • Most records: keep at least 3 years after filing (per IRS guidance). See IRS on recordkeeping: https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping.
  • Substantial omission of income (over 25%): IRS can go back 6 years.
  • Fraud or no return filed: no time limit (indefinite).
  • Employment tax records: keep at least 4 years after the tax becomes due or is paid.
  • Specific situations (losses, worthless securities, bad debt): keep up to 7 years.

(These periods reflect current IRS guidance; always confirm for your situation.)

How the IRS will ask for records

How to build a compact audit package

  • Create a one‑page cover with taxpayer name, tax year, and a short list of enclosed documents.
  • Add a table of contents or index with page numbers.
  • Group records by return line (income, cost of goods sold, travel, meals, vehicle, etc.).
  • Highlight entries that reconcile to totals on the return (e.g., bank deposits = reported income).
  • Consider a single PDF for correspondence audits; for office/field audits bring organized paper copies.

If you can’t find a record

  • Contact payors (employers, banks, brokers) for transcripts or duplicate forms.
  • Use bank and credit‑card statements, invoicing software, calendars, and email receipts to reconstruct amounts and dates. Keep a reconstruction memo explaining the sources and why the original is missing.

Common mistakes I see

  • Sending unindexed piles of paper. Unorganized submissions slow the process and invite follow‑up requests.
  • Over‑retaining sensitive files without protection. Keep copies but secure personally identifiable information.
  • Assuming a small amount won’t matter. Repeated small discrepancies often trigger deeper review.

Practical tips to reduce future audit stress

  • Automate recordkeeping with accounting software and attach digital receipts to transactions. (Tools reduce reconstruction time.)
  • Keep a mileage log contemporaneously; reconstructed logs are less persuasive.
  • Review records quarterly, not just at tax time.
  • If contacted, respond promptly and meet deadlines in IRS letters; delays can limit your rights.

Relevant resources and further reading

Professional disclaimer

This content is educational and reflects general IRS guidance and my professional experience. It is not individualized tax advice. For complex audits, contested adjustments, or potential penalties, consult a CPA, enrolled agent, or tax attorney.

Author note

In my 15 years advising audit clients, the single best action is simple: label, date, and index your records as you go. That habit prevents most headaches if the IRS comes calling.